Mauritius – VAT on Cross-Border Digital Services(call to action) 

Starting from January 1, 2026, Mauritius will impose VAT on cross-border digital and electronic transactions. Non-resident providers of digital and electronic services should familiarize themselves with the new framework if they haven’t already. 

The Mauritian Ministry of Finance has, for some time now, put on the agenda the need to introduce a similar regime to reduce the uneven playing field between domestic and cross-border providers of digital services. 

The Finance Act 2025, previously adopted by the Parliament, introduced expected tax provisions that amend the VAT Act in the part related to the cross-border provision of digital services, and import of services. An entirely new set of rules has been adopted to reduce the potential complexity that non-resident providers of digital services can “experience” while establishing the VAT compliance system for this sort of supply. 

Key takeaways for overseas digital service providers

1. Non-resident digital service providers should register for VAT from their first supply
2. The regime is applicable for both B2C and B2B transactions if the recipient isn’t a locally VAT-registered business 
3. VAT registration, VAT filing, and payment can be processed without the local agent, only up to a specifically defined threshold 
4. Cross-border providers of digital services should also submit informative Sales List reports 
5. Remittance can be done in a foreign currency 
6. Invoice issuance is mandatory 
7. If gross sales income exceeds MUR 3 million, a local agent is required. 
8. VAT Registration and return filing can only be done electronically 
9. Standard VAT rate at 15% shall be imposed on these transactions
10. Late registration and late payment penalties should be imposed under the general VAT regime 

Cross-border providers of digital services should be aware that a new VAT regime will take effect in Mauritius within a period of less than 4 weeks. If they have customers in this country, they should develop a VAT compliance strategy accordingly to avoid late registration or late payment penalties imposed by the revenue authority.